Indofood Agri Resources' joint venture company, Companhia Mineira de Acucar e Alcool Participacoes (CMAA), has invested in a sugar asset in Brazil.

In a statement to the Singapore Exchange, Indofood Agri said CMAA had entered into an arrangement with JFLIM Participacoes, under which JFLIM will transfer its fully owned subsidiary, Vale do Pontal Acucar e Alcool, to CMAA.

CMAA is a 50:50 joint venture between Indofood Agri and Apia SP Participacoes, while JFLIM is a 50:50 joint venture between JF Family and Rio Grande Investment, a member of the Salim group. The Salim group is a controlling shareholder of Indofood Agri with a deemed interest of 74.49 per cent.

Under the agreement, CMAA will issue new shares to JFLIM based on an agreed valuation of about 75.9 million Brazilian real (S$26.5 million), following which JFLIM will have a 30 per cent stake in CMAA.

Indofood Agri and JF Family will both retain a 35 per cent stake each in CMAA. JF Family will maintain its 50 per cent interest - direct and indirect via JFLIM - in CMAA, whereas Rio Grande will own an effective 15 per cent interest in CMAA.

"The acquisition will enable CMAA to expand its footprint in the sugar and ethanol industry in Brazil with total annual cane crushing capacity increasing from 5.8 million tonnes to 8.3 million tonnes after the acquisition," Indofood said.

Shares in Indofood Agri yesterday closed at 21.5 cents, down half a cent.